MANILA, Philippines - The Philippine Stock Exchange index could hit as high as 6,000 by the end of next year, Philam Life, the country's largest insurer, said on Wednesday.
Bullishness in the local stock market will be driven by expected sustained high level of Philippine economic growth to be supported by the elections next year and the roll out of public-private partnership projects, Eduardo Banaag, Jr., Philam Life First Vice President and Equity Fund Manager, said in a briefing.
"GDP (gross domestic product) growth appears sustainable and will most probabaly even accelerate further," Banaag said, noting the 6.1% expansion recorded in the first half of the year.
"And next year, we have the elections and there is also a good chance that some PPP projects will begin," he added.
Banaag noted the increasing confidence of investors in the local stock market as the Philippines continue to outperform other markets in Asia.
He pointed out the country's GDP which is expected to grow further by year end versus 2011 in contrast with other economies' which are foreseen to remain flat or even decelerate from last year.
But for this year, Banaag said the PSEi is only expected to hit "near 5,400" by year end.
"It will tend to that level as we end the year," Banaag said.
The PSEi shed 33.63 points to close at 5,398.69 on Wednesday, while the broader all-share index fell by 21.42 points to 3,573.54.
The PSEi closed at 4,371.96 on Dec. 29, the last trading day for 2011.